Venu Srinivasan's family members entered a non-compete agreement to protect the TVS brand across different business segments, including two-wheelers, auto after-market, and tractors.
Venu Srinivasan, an Indian industrialist, is the esteemed Chairman Emeritus at TVS Motor Company, a global leader in producing two-wheelers, and Sundaram-Clayton Limited, a prominent manufacturer of automotive components in India.
On March 21, 2024, an agreement known as a memorandum of understanding (MoU) was signed by Venu Srinivasan, alongside his wife, the prominent business leader Mallika Srinivasan, as well as their children Lakshmi Venu and Sudarshan Venu.
Sudarshan Venu, the Managing Director of TVS Motor, has committed to refraining from utilising the TVS trademark in the production and distribution of aluminium and magnesium die castings for both original equipment manufacturers (OEMs) and the aftermarket, as disclosed in exchange filings by TVS Motor on March 23.
He has also consented to refrain from engaging in the agricultural machinery sector, which includes tractors and self-propelled farm equipment, among other items, for a specified duration.
Mallika Srinivasan and Lakshmi Venu have reached an agreement to refrain from utilising specific trademarks, notably "TVS," in the two-wheeler and three-wheeler vehicle industries, financial services, real estate, and other related ventures.
The parties are part of the promoter group. Still, the company is not a party to the MOU. The filings noted, as stated, "This MOU doesn't in any way impact the Company's business adversely, and its ability to continue its business as currently conducted today is not impacted."
Mallika Srinivasan is Chairman and Managing Director at Tractor and Farm Equipment Limited (TAFE), a prominent tractor manufacturer headquartered in Chennai and part of the Amalgamations group. On the other hand, Lakshmi Venu serves on the TVS Motor Company board and is Deputy Managing Director at TAFE Motors and Tractors Limited.
These appointments follow a family settlement facilitated by a Memorandum of Family Agreement (MFA) among the members of the TVS Family, finalised on December 10, 2020.
In December 2020, members of the extensive TVS family reached an agreement to restructure the group's business operations. This restructuring involved multiple demergers and amalgamations overseen by different family members. These efforts culminated in a comprehensive family settlement, documenting the oral agreements reached among the family members. This settlement, effective from February 4, 2022, not only formalised the understandings among the family members but also encapsulated other agreements and arrangements among different factions within the larger TVS family and entities under their control, both current and prospective.
Furthermore, subsequent to the execution of the family settlement, the involved parties have reached additional agreements beyond the scope of the initial settlement. These supplementary agreements, as conveyed in a letter authored by Venu Srinivasan, include specific provisions regarding utilising the TVS brands.
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